Paycom Q3 Revenue Rises 10.2% to $543.8 Million; Raises Full-Year Outlook
Paycom delivered another double-digit revenue quarter with mid-20s GAAP net margins and raised its full-year outlook again.
Oklahoma City-based Paycom Software reported total revenues of $543.8 million for the third quarter ended Sept. 30, 2026, up 10.2% from $493.3 million a year earlier, according to its earnings release filed with an 8-K Wednesday. Recurring and other revenues were $519.3 million, up 11.3%, and made up 95.5% of total revenues.
GAAP net income was $133.2 million, or $2.99 per diluted share, compared with $110.7 million, or $1.96. Non-GAAP net income was $150.0 million, or $3.37 per diluted share, versus $109.6 million, or $1.94. Adjusted EBITDA was $268 million, or 49% of total revenues.
Guidance and framing
Founder and CEO Chad Richison said clients are realizing ROI from automated decisioning logic in the platform and that strong performance supported another raise to the full-year outlook. For 2026, Paycom now expects total revenue of $2.213 billion to $2.218 billion, representing an estimated 8% year-over-year growth, the company said. Recurring and other revenue growth is estimated at 9%. Interest on funds held for clients is estimated at $107.0 million. Adjusted EBITDA is guided to $1.069 billion to $1.079 billion, or 48.5% margin at the midpoint.
Recurring revenue remaining above 95% of the mix is the structural feature that supports Paycom’s margin profile. The jump in GAAP diluted EPS to $2.99 from $1.96 also reflects a lower share count alongside operating leverage, a combination buyback-aware software investors track closely.
Raising the full-year revenue band into a tight $2.213 billion to $2.218 billion range leaves little room for a fourth-quarter miss, which is why the 48.5% midpoint Adjusted EBITDA margin guide matters as a cushion if growth stays in the high single digits.
Why it matters
Paycom’s print is less about hypergrowth and more about durable mid-teens-to-high-single-digit compounding with elite margins: 10% revenue growth, 24% GAAP net margin and a 49% Adjusted EBITDA margin. The raised guide keeps the HCM software name in the profitable-growth camp retail investors use when rotating away from unprofitable SaaS.
By the numbers
- Q3 revenue: $543.8 million, up 10.2%
- Recurring revenue: $519.3 million, up 11.3%
- GAAP diluted EPS: $2.99
- Non-GAAP diluted EPS: $3.37
- Adjusted EBITDA: $268 million (49% of revenue)
- FY2026 revenue guide: $2.213 billion to $2.218 billion
Sources
- Paycom Form 8-K with third-quarter 2026 financial results, filed Nov. 4, 2026 (accession 0001193125-26-447248)
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